India-Iran Ties: Chabahar, Hormuz and the Road Ahead

Context

During the Shanghai Cooperation Organisation (SCO) meeting in Bishkek, India’s Prime Minister, Narendra Modi, met Iran’s President Masoud Pezeshkian and discussed the importance of Indo-Iran relations amidst the current West Asian instability.

Key Highlights

• India reiterated its wish for dialogue and diplomacy, freedom of navigation, protection of citizens, and uninterrupted commercial trade.
• The meeting took place as the US and Iran re-escalated tensions and military exchanges after a tenuous ceasefire concluded two months ago.
• PM Modi voiced concern over the escalation and said issues should be addressed through peaceful negotiations.
• Iran, meanwhile, tried to engage India to play a role in fostering peace and preventing any further escalation in the region.
• The developments highlight India’s increased stature as a nation that can communicate simultaneously with different stakeholders in a highly polarised geopolitical scenario.

Why Strait of Hormuz Matters to India

• A vital route in energy trade, the Strait of Hormuz is one of the most important straits in the world.
• Changes in navigation traffic in the strait may cause a rise in oil and gas prices globally and inflationary pressure.
• India is also a highly dependent country for crude oil imports, particularly due to long disruptions to energy supply routes from West Asia.
• In this context, India’s approach of “Freedom of Navigation, Freedom of Commerce” is a diplomatic approach and an economic interest.

Strategic Importance of India-Iran Relations

• Chabahar Port

  • Chabahar Port is the center of India’s policy of connectivity towards Iran, Afghanistan, and Central Asian countries.
  • The port will provide an alternative route to Afghanistan and the rest of the Eurasian region for India, which will reduce its dependency on a Pakistani route.
  • Ongoing collaboration in Chabahar would help enhance India’s presence in the region of connectivity and further help in the development of the International North-South Transport Corridor (INSTC).

• Trade and Connectivity

  • Iran has a strategic location between South and Central Asia, the Caucasus and West Asia.
  • Better cooperation in transporting goods, shipping, and logistics would help India to strengthen its connectivity with Central Asian landlocked economies.
  • But on the other hand, sanctions and geopolitical tension continue to be significant limitations in expanding bilateral economic relations.

India’s Strategic Balancing Act

• India has long ties with Iran, Israel, the United States,s and Gulf countries, es and thus strategic balancing is essential.
• New Delhi aims to defend the country’s interests without getting entangled in regional conflicts.
• The policy of strategic autonomy is reflected in India’s policy, wherein it aims to connect with different powers according to the needs of the hour for the country.
• Last but not least, India’s ties with Iran illustrate that in a period of geopolitical strain, Indian diplomacy is more interested in talking than fighting.

Challenges

• India’s economic engagement with Tehran may be troublesome in case there is a confrontation between Washington and Tehran.
• Possible sanctions are those relating to bilateral trade, banking, insurance and shipping, and investment.
• Restrictions in the Strait of Hormuz are a threat to India’s energy security and sea trade.
• Regional conflicts may also pose threats to Indian citizens, Indian communities overseas, and commercial shipping.
• Maintaining a balance between ties with Iran and India’s strategic partnership with the United States and Israel is politically knotty.

Way Ahead

• The traditional method of India of dialogue, diplomacy and peaceful resolution of the issues of the West Asian countries should be continued.
• New Delhi should strengthen its maritime cooperation and ensure adherence to international rules and regulations of freedom of navigation and commercial shipping.
• India needs to expedite the progress of Chabahar port and INSTC to diversify connectivity options.
• The diversification of suppliers, strategic petroleum reserves, and greater investment in renewable energy should help improve energy security.
• Multilateral dialogues and peace should be promoted on platforms such as SCO and BRICS in India.
• High-level engagement with Iran can be key to maintaining strategic space and protecting India’s economic and connectivity interests of India.

Conclusion

• India-Iran relations are not limited to bilateral diplomacy; they have a wide range of other interests including energy security, connectivity, maritime trade and stability in the region, which the Modi-Pezeshkian meeting has highlighted.
• In this context, India’s focus on dialogue, freedom of navigation and peaceful dispute resolution has been in keeping with its overall foreign-policy of strategic autonomy.
• Balancing Iran with other big countries is crucial for India to ensure its interests in a fiercely competitive West Asia.

Source: The Indian Express

Mains PYQ

(Q) “India’s relations with Israel have, of late, acquired a depth and diversity, which cannot be rolled back.” Discuss. (2018)

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